CHANCELLOR George Osborne is under renewed pressure to abandon a planned increase in fuel duty, amid warnings that the price of petrol is putting household budgets under unprecedented pressure.

As MPs prepare to vote tomorrow on the planned 3p-a-litre increase due in ­January, the consumer organisation Which? said more people than ever were being forced to cut back on motoring costs.

It said any increase in fuel duty would hit ­struggling households when they can least afford it after the Christmas season.

Researchers found almost 9 million households curbed their spending on essentials last month while 6.4million dipped into savings to cover the cost of fuel.

Over the past three months the ­numbers worried about rising fuel prices have risen to a record 85 per cent, while those saying they would cut back on car running costs rose to 39 per cent, the highest figure recorded.

An online survey of more than 2,000 ­people revealed one in 10 used their ­savings to pay their car’s running costs in September.

The economic recovery is at risk if we don’t see an increase in consumer confidence

Which? executive director Richard Lloyd

Which? found one-in-three people are finding it difficult to live on their current income, while a third cut back on spending on essentials last month, up from 25 per cent in September. More plan to cut back on groceries in the next few months.

The watchdog claims its findings show consumer confidence is at rock bottom and says the Government and businesses must do everything possible to keep prices in check and encourage a spending ­recovery which is “essential to the nation’s economic well-being”.

Which? executive director Richard Lloyd said: “Fuel prices are now the number one consumer worry and people are already telling us that they are having to cut back and dip into savings, just to get by.

“On the back of inflation-busting energy bill rises and increasing food prices, consumers can’t afford another hit on their household budget. Like many business leaders, we’re calling on the Government to reconsider their plans to increase fuel duty in January and instead, focus the forthcoming Autumn Statement on ­measures that will help put money back into the pockets of consumers.

“The economic recovery is at risk if we don’t see an increase in consumer confidence.”

Andy Clarke, Asda’s president and CEO, said: “A 3p a litre tax in January will come at the worst possible time for UK families who will already be feeling the cost of Christmas and energy price rises.

“We will continue to do everything we can to keep fuel prices low, and have led the way by dropping them across the UK by up to 6p per litre in the last month alone.”

Which? said motorists can use its websites to help find the cheapest fuel and special offers. Its car experts also provide tips on how to use less fuel.